Uranium Participation Corp. has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and Cantor Fitzgerald Canada Corp., and including TD Securities Inc. and BMO Capital Markets, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 4.88 million common shares of the company at a price of $4.10 per share, representing total gross proceeds of $20,008,000. Closing is expected on or about May 31, 2018, and is subject to regulatory approval including that of the Toronto Stock Exchange.
The underwriters also have an option to purchase up to an additional 732,000 shares at the offering price (representing 15 per cent of the offering) on the closing date for market stabilization purposes and price to cover overallotments for a period of five days after the date of closing.
The net proceeds of the offering will be used by the company to finance future purchases of triuranium octoxide and/or uranium hexafluoride, and for general corporate purposes.
The shares to be issued under this offering will be offered in accordance with the terms of a prospectus supplement in all provinces in Canada, except Quebec, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and such other jurisdictions as may be agreed upon by the company and the underwriters.
About Uranium Participation Corp.
Uranium Participation is a company that invests substantially all of its assets in uranium oxide in concentrates (U3O8) and uranium hexafluoride (UF6), with the primary investment objective of achieving appreciation in the value of its uranium holdings through increases in the uranium price.
Source: Stockwatch